Question

Case 11.1

Personnel Policies Help Intermatic Grow

Intermatic Inc., is a Spring Grove, Illinois, producer of timing devices and low-voltage lighting. Jim Miller, CEO, claims his company’s personnel policies and programs have been the key to its growth, profitability, and survival, and thinks they saved it from disaster.

Several years ago, when Intermatic was on the verge of bankruptcy, Miller, a former employee, was asked to return as president. To save the company, he reduced the work Page 300force by 50 percent, closed one division, restructured the staff, consolidated positions, and instituted the employee relations policies and programs that have since assured the firm’s success.

An incentive system for production workers earns them about 135 percent of their base pay, and some of the unusual employee benefits are (1) programs that pay workers to shed pounds; (2) free eye examinations and glasses; (3) aerobics classes; (4) golf lessons; (5) an outside exercise course; (6) an indoor track; (7) tennis courts; (8) membership in arts-and-culture clubs; (9) shopping at company-subsidized stores for items such as jeans, tee shirts, and baseball caps; and (10) reimbursement of tuition for college courses.

In addition, Miller is quite open in his communications with employees, telling them what has to be done and why it must be done. He is also available to help people with personal problems, knows them by name, and knows their family situations. The payoff? Turnover is only 3 percent, compared with more than 5 percent for similar firms, and it has become such a popular place to work that there’s a waiting list of people seeking employment with Intermatic.

Using the above Case Study, Answer the following questions in a Word Document (Please be detailed in your answers).

1. How do you explain the improved performance at Intermatic?

2. Would Jim Miller’s methods work at all companies? Explain.

3. Would you like to work at Intermatic? Why or why not?

Answer 1

answer-

How do you explain the improved performance at Intermatic?

The method which CEO miller takes to improve the performance of intermatic and saved it from bankruptcy is to use motivation and employee relation approach. Miller motivated the employees by providing j benefits and making workplace environment fair and open communication policy which lead to higher work performance, lower work stress and lower employee turnover at Intermatic.

according to Herzberg, there are two factors hyginene and motivators. Miller uses them to motivate employees and create job satisfaction.like he offer unsual benefits in the above case and create policy in which he has open doors for employees for getting help from miller. when workers find job satisfaction at their workplace then it become difficult for them to leave the job and they do their best to show higher performance.

Would Jim Miller’s methods work at all companies? Explain.

No, i think Jim miller's method would not work at all companies because each and every company has different employees who are motivated by different different methods like one would be motivated by promotion while other will motivated by high salary etc. if these methods would work in all companies then all companies would have same rate of employee turnover 3% rather than having 5 percent.

Would you like to work at Intermatic? Why or why not?

Yes, i would like to work in such firm because in this firm, i would have benefits which not only help me to improve my skills but also help me to realse work stress like i have to get benefits like indoor track, tennis court also i can shop from company's store at discounted price. i also get reimbursement of tuition for college courses which is huge deal for me.

I think these are benefits which motivate me to connect with the company and do everything with best of my abilities to retain in the company.